Accelerate those State 4th Q Estimated Tax Payments

As we inch closer and closer to tax reform, it is important that taxpayers maximize any benefits that they may lose with the potential reforms in 2018. One common deduction that is going away is the itemized deduction for state and local tax payments.

Under current tax law, taxpayers can take a deduction on their Schedule “A” (itemized deductions) for state and local taxes paid in the current year. Under both the House and Senate’s versions of tax reform, this deduction is going away and there is a possibility that any state and local taxes that you pay after December 31, 2017 will no longer be deductible on your personal income tax return.

Therefore, we are recommending that all our clients pay their state and local 4th quarter estimated payments by December 31, 2017 instead of on the due date, January 15, 2018. This will allow you to get a federal tax deduction for your 4th quarter state and local payments. If you wait until January to make the estimated payments, you may never get the deduction. This allows you to maximize your itemized deduction for state and local taxes before it is gone with tax reform.

“Four Seasons has enjoyed working with McKonly & Asbury and their qualified team of tax professionals for many years. McKonly & Asbury’s team has been Four Seasons’ “first call” for tax questions and advice for both the corporation and personally for our owners. Their communication extends beyond answering questions to various inquiries and services. If the tax team does not have the answer, they will connect Four Seasons with someone who does, but that is quite rare!”by Four Seasons Produce